$HONEY is soft-pegged to the US Dollar and fully collateralized. It is Berachain’s native stablecoin, providing a stable means of exchange within the ecosystem and beyond.
Using and minting $HONEY
$HONEY serves the same role as other stablecoins — payments, remittances, hedging against volatility — and is widely used across Berachain DeFi as a base trading pair and lending asset. Minting and redeeming $HONEY against collateral happens through BHoneySwap at honey.berachain.com. You can also acquire it by swapping on BEX or another exchange.
The lifecycle is straightforward: deposit a whitelisted collateral asset to mint $HONEY, use it however you like, and redeem it for collateral when you’re done. Minting and redemption rates are configurable per collateral asset by $BGT governance.
Collateral assets
The following assets can be used as collateral to mint$HONEY:
$USDC$BYUSD($pyUSD)$USDT0$USDE
$HONEY Architecture
A flow diagram of the $HONEY minting process and associated contracts is shown below:
$HONEY vaults
$HONEY is minted by depositing eligible collateral into specialized vault contracts. Each vault is specific to a particular collateral type. Mint and redeem rates are configured independently per collateral asset — see Fees for the current values.
Collateral custody
Governance can designate a vault as a custody vault by setting a custodian address. When custody is enabled for a vault, deposited collateral is automatically forwarded from the vault contract to the custodian. On redemption, collateral is pulled back from the custodian before being returned to the user. The vault’s share accounting is unaffected — the 1:1 exchange rate between collateral and vault shares is maintained regardless of where the underlying assets are held. Custody can be removed by governance, which transfers all collateral back from the custodian to the vault contract.HoneyFactory
At the heart of the$HONEY minting process is the HoneyFactory contract (same address on mainnet and Bepolia). This contract acts as a central hub, connecting all the different $HONEY Vaults and is responsible for minting new $HONEY tokens.
As shown in the diagram, your deposits are routed through the HoneyFactory contract to the appropriate vault. The HoneyFactory custodies the shares minted by the vault (corresponding to your deposits) and mints $HONEY tokens to you.
Depegging and basket mode
Basket Mode is a safety mechanism that activates when collateral assets become unstable. It affects both minting and redemption of$HONEY in specific ways:
Redemption:
- When ANY collateral asset depegs, Basket Mode automatically activates
- In this mode, you can’t choose which asset you redeem your
$HONEYfor - Instead, you redeem for a proportional share of ALL collateral assets in the basket
- For example, if you redeem 1
$HONEYtoken with Basket Mode active, you’ll get some of each collateral asset based on their relative proportion as collateral
- Basket Mode for minting is considered an edge case that only occurs if ALL collateral assets are either depegged or blacklisted. Depegged assets cannot be used to mint
$HONEY - In this situation, to mint
$HONEY, you must provide proportional amounts of all collateral assets in the basket, rather than choosing a single asset - If one asset is depegged, you can mint only with the other asset
Gasless transfers and approvals
$HONEY supports two ERC-20 extensions that allow transactions to be submitted by a third party on behalf of the token holder, removing the need for the holder to pay gas:
- EIP-2612
permit— lets a holder sign an off-chain message authorizing a spender allowance. A relayer or contract can then submit the permit on-chain, so the holder never sends a transaction. This is the same interface used by USDC, DAI, and most modern ERC-20 tokens. - EIP-3009
transferWithAuthorization/receiveWithAuthorization— lets a holder sign an off-chain message authorizing a one-time transfer to a specific recipient. The recipient (or a relayer) submits it on-chain. Each authorization includes a unique nonce to prevent replay.
Fees
$BGT holders receive fees collected from minting and redeeming $HONEY. The current fee structure is the following:
| Stablecoin | Mint Fee | Redeem Fee |
|---|---|---|
| USDT | 0.1% | 0% |
| byUSD | 0.1% | 0% |
| USDC | 0% | 0.05% |
| USDe | 0% | 0.05% |
$HONEY with $USDC:
Minting:
- User deposits
1,000 $USDC - Receives
1,000 $HONEY(0% fee) - No fees collected
- User redeems
1,000 $HONEYfor$USDC - Receives
999.5 $USDC(0.05% fee = 0.5 $USDC) 0.5 $USDCfee is distributed to$BGTholders